Stable housing outlook for 2012
The Canadian housing market will continue along its growth trajectory in 2012 despite concerns over European debt crisis and its impact on the global economy, according the major industry players.
The Housing Market Outlook 2012 examined trends and developments in 26 major markets across the country. Some 88% expect average price increases by year-end 2011, with percentage hikes ranging from 1% to 16%. The forecast for 2012 shows the upward trend moderating, but still ahead of 2011 figures.
By year-end 2011, an estimated 460,000 homes are expected to change hands, up 3% from the 447,010 units reported in 2010. Sales are expected to climb one per cent to 464,500 units in 2012. The value of a Canadian home is set to climb to $363,000 this year-an increase of 7% over the $339,030 posted one year ago.
By year-end 2012, the average price in Canada is forecast to appreciate 2% to $371,000.
“The Canadian housing market has demonstrated tremendous resilience in recent years, but 2011 stands out,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and final quarters. While clearly not impervious to the impact, Canadian consumers are intent on making their moves now, in advance of higher housing values and rising interest rates down the road.”
Improvement in both provincial and local economies, especially during the second half of 2012, should serve to further stimulate homebuying activity. Calgary, Saskatoon, and Halifax-Dartmouth will likely lead the country in unit sales in 2012, each with a projected increase of five per cent. Regina, Greater Toronto, Saint John, Moncton, and St. John’s anticipate a three per cent increase in home sales next year.
“The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further,” says Elton Ash, Regional Executive Vice President, Western Canada.
“Nationally, we remain on an upward track, and the confidence consumers have demonstrated in housing over the past decade will prove well founded once again next year. The rising belief in homeownership is key, especially among Generation X and Y-some of whom are making their moves sooner. Boomersa nd retirees are changing, too. They’re healthier and more active, with longer life expectancy. Overall, we’re seeing an extension of the homeownership cycle, and it’s great news for housing.”
The highest appreciation is expected in Regina, where values are forecast to increase eight per cent, followed by Greater Toronto, Halifax-Dartmouth, and St, John’s-each posting a 5% gain.
You can find the original article here: Housing Market Outlook 2012.